What is a Hammer Candle? 🔨(Hammer)
- It is a candle that forms at the end of a downtrend, and it tells us:
"Get ready, traders, the market might reverse!" 🚨📈
- What does it look like? 🤔
A small body (short candle)
A long lower wick (shadow) that is several times the body
Almost no upper wick or it is very small
It usually forms at the bottom of a downtrend
- What does it mean simply?
If the market was crashing, and suddenly the hammer appeared:
This means that selling has stopped and buyers have entered the game strongly 💪💰
It means the market tried to drop further, but buyers said: "That's enough!" and pushed the price back up before it closed.
So can I rely on it alone? 🤨
No, of course not! ✅
As I said: it is a confirmation tool, not a definite indicator.
You need to wait for:
A subsequent bullish confirmation candle (Bullish Confirmation)
Or see strong support at this level
Or use other indicators like RSI or MACD